Divorce talks between London and Brussels are set to move on to transition arrangements, trade and security next year as Britain prepares to leave the European Union in March 2019.

World Bulletin / News Desk

Prime Minister Theresa May said 2018 would be a year of "renewed confidence and pride" for Britain as it confronts the challenges of negotiating Brexit, in her New Year message out Sunday.

May said 2017 had been a year of progress for Britain as it struck agreement on its departure bill, Northern Ireland and the rights of EU citizens, in the first phase of Brexit negotiations.

"I believe 2018 can be a year of renewed confidence and pride in our country," the premier said.

"A year in which we continue to make good progress towards a successful Brexit deal, an economy that's fit for the future, and a stronger and fairer society for everyone.

"And whatever challenges we may face, I know we will overcome them by standing united as one proud union of nations and people."

However, the British Chambers of Commerce, which represents thousands of firms across the country, warned that business was losing patience waiting for clarity on what will happen once Britain leaves the EU.

"Getting the twin challenges of Brexit and the economic fundamentals right will require leadership, consistency and clarity -- after a year in which business has been dismayed by what it sees as division and disorganisation."